Joanne Bushell, Johannesburg-based CEO of Regus Africa, noted: “Skill shortages are the biggest commonly acknowledged growth constraint, but lack of quality office space is rapidly becoming another limiting factor on business and jobs growth.

“Enquiries for flexible office space solutions are up 53,3% year on year at Regus. We expect demand to continue to strengthen in view of the latest property industry data on office vacancy levels.”

Bushell’s comments follow the publication of the Sapoa Office Vacancy Survey showing that average vacancy levels in big decentralised office nodes has fallen below 5%. In Durban and Cape Town the level is below 3%.

Rentals at new developments in desirable Johannesburg office locations such as Bryanston, Fourways and Sandton are up nearly 50% in a year, said the survey.

Bushell pointed out: “In recent months, Regus has opened a new business centre in Century City in Cape Town and will be opening soon at the Palazzo Towers in Fourways, taking the total space in our local portfolio up to over 16 000 sqm. This has helped us keep pace with demand, but we anticipate continued pressure. 

“This is not simply a numbers game; qualitative pressures are also evident, according to feedback from prospective clients.”

The Regus regional chief said that until recently office tenants looking at traditional leases had found landlords “extremely accommodating” on issues such as redecoration and refitting to meet IT or specialised operational needs, but this has changed.

Bushell added: “The word is that landlords are not nearly as receptive and helpful as a year or 18 months ago when assistance is required by a would-be tenant with special needs. Going the extra mile to put signatures on long leases seems to be coming to a halt.

“We believe this is the new reality – certainly on the run-in to 2010 and possibly beyond. Business owners with lease renewals on the near-term horizon should carry out a 360-degree strategic review of all their options, including flexible office solutions, and do it sooner rather than later.”